Three companies – Reliance New Energy Limited, Ola Electric Mobility Private Limited and Rajesh Exports Limited – signed the Production Linked Incentive (PLI) Scheme by the Government of India for Advanced Chemistry Cell (ACC) Battery Storage.
These companies will receive incentives under India’s Rs 18,100 crore program. In addition to the capacities allocated by the Ministry of Heavy Industries under the PLI Program, private players are expected to create battery manufacturing capacity to the tune of~95 GWh.
A total of 10 bids were received from companies with a manufacturing capacity of 128 GWh under the PLI Scheme of ACC Battery Storage. Under the ACC PLI program, the manufacturing facility would have to be set up within two years. The incentive will be disbursed thereafter over five years on the sale of batteries manufactured in India.
The Government has approved the PLI Scheme for achieving the manufacturing capacity of Fifty (50) GigaWatt Hour (GWh) of ACC for enhancing India’s manufacturing capabilities with a budgetary outlay of Rs 18,100 crores. As per the Government, the emphasis is to achieve greater domestic value addition, while ensuring that the cost of battery manufacturing in India is globally competitive.
As per the Government, this PLI scheme along with the existing PLI Scheme for the automotive sector (Rs 25,938 crore) and Faster Adoption of Manufacturing of Electric Vehicles (FAME) (Rs 10,000 crore) will enable India to move from traditional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system.